The UK has three separate legal systems: England and Wales, Scotland and Northern Ireland. Most international commercial litigation in England goes to the Business and Property Courts, including the Commercial Court, and arbitration seated in England, Wales or Northern Ireland is governed by the Arbitration Act 1996 as amended by the Arbitration Act 2025 from 1 August 2025. English and Welsh awards are enforceable in New York Convention states, and since 1 July 2025 the UK applies the Hague 2019 Judgments Convention to judgments in proceedings started after it took effect between the states concerned.
Courts
In England and Wales, the Business and Property Courts are the specialist part of the High Court for commercial, financial, property, technology and construction disputes, sitting in London and regional centres. The Commercial Court hears significant commercial cases, most with an international element, and supervises arbitrations seated in England and Wales. Litigation follows the Civil Procedure Rules, and costs are in the court's discretion.
Scotland has its own courts. The Court of Session in Edinburgh is the supreme civil court; its Outer House hears first-instance cases, and commercial actions go to specialist commercial judges who manage cases actively, with early preliminary hearings and early disclosure. A contract with Scottish counterparties should state which jurisdiction's courts and law apply.12345
Arbitration and the 2025 reforms
The Arbitration Act 2025 amended the Arbitration Act 1996 from 1 August 2025. The changes apply to arbitrations started on or after that date, whenever the arbitration agreement was made. Key changes: the law governing the arbitration agreement is the law the parties expressly choose for it or, failing that, the law of the seat, and a governing-law clause in the main contract is not enough; arbitrators have a statutory duty to disclose circumstances that could raise justifiable doubts about impartiality; tribunals may make summary awards where a claim or defence has no real prospect of success, unless the parties agree otherwise; and emergency arbitrators appointed under institutional rules can make peremptory orders.
Challenges to awards for lack of jurisdiction under section 67 are now narrower: a party that took part in the arbitration cannot normally raise new grounds or evidence, and the court does not rehear evidence. The 1996 Act extends to England and Wales and Northern Ireland; Scottish-seated arbitrations follow the Arbitration (Scotland) Act 2010.
The UK has applied the New York Convention since 1975, on a reciprocity basis, so awards made in the UK are enforceable in other contracting states.6789101112131415
Enforcing foreign judgments
The HCCH 2019 Judgments Convention has been in force for the UK since 1 July 2025. It covers civil and commercial judgments between contracting states, including the EU Member States, but only where the Convention was in effect between both states when the original proceedings began, and it excludes areas such as insolvency, intellectual property and arbitration. The 2005 Choice of Court Agreements Convention also applies to judgments given under exclusive choice-of-court clauses.
Outside the Hague conventions, money judgments from countries designated under the Foreign Judgments (Reciprocal Enforcement) Act 1933 can be registered; judgments from other countries generally require fresh proceedings. Check the counterparty's country before choosing a foreign court rather than arbitration.16171819
Mediation and costs
The Civil Procedure Rules make promoting ADR part of the overriding objective and give courts in England and Wales express power to order the parties to engage in ADR. In the small claims process, defended claims of £10,000 or less are referred to a free court mediation service. Unreasonably refusing ADR can therefore affect both the timetable and costs.
Costs in the English courts are in the court's discretion, which includes deciding who pays and how much. Parties should budget for the risk of paying the other side's costs if they lose.2021225
| Route | Legal basis | Cross-border enforcement |
|---|---|---|
| English courts (Business and Property Courts, Commercial Court) | Civil Procedure Rules; Senior Courts Act 1981 | Hague 2019 Judgments Convention states (UK from 1 July 2025); Hague 2005 for exclusive choice-of-court clauses; otherwise local law of the enforcing country |
| Scottish courts (Court of Session) | Court of Session rules; commercial actions procedure | Hague conventions ratified by the UK (application to Scottish judgments not reviewed here); otherwise local law of the enforcing country |
| Arbitration seated in England, Wales or Northern Ireland | Arbitration Act 1996 as amended by the Arbitration Act 2025 (from 1 August 2025) | New York Convention states (UK since 23 December 1975, reciprocity basis) |
| Arbitration seated in Scotland | Arbitration (Scotland) Act 2010 | New York Convention states |
| Mediation | CPR 1.1, 1.4 and 3.1 (court-ordered ADR); small claims mediation | Depends on how the settlement is recorded (not researched here) |
Documents usually needed
- Dispute resolution clause naming the courts or the seat, rules and institution
- Express choice of law for the arbitration agreement itself
- Arbitrator disclosure statements
- Certified copy of the award or judgment and the underlying agreement for enforcement
- Evidence of the date proceedings started abroad, for Hague 2019 enforcement
- Correspondence showing attempts at settlement or mediation
Common mistakes
- Relying on the main contract's governing-law clause to govern the arbitration agreement, when section 6A now points to the law of the seat unless the parties expressly choose otherwise.
- Referring to UK courts in a clause without specifying England and Wales, Scotland or Northern Ireland.
- Assuming a foreign judgment will be enforced under the Hague 2019 Convention when the proceedings began before it took effect between the two states.
- Refusing mediation outright, given the courts' power to order ADR and their discretion on costs.
- Holding back jurisdiction objections or evidence in the arbitration and planning to raise them in a later section 67 challenge.
When the business crosses borders
- Awards made in the UK are enforceable in New York Convention states, and the UK enforces foreign Convention awards on a reciprocity basis.
- Hague 2019 covers judgments between the UK, EU Member States and other contracting states, but excludes insolvency, IP and arbitration matters.
- Arbitrations started before 1 August 2025 remain under the unamended 1996 Act, even if heard later.
- Scotland has separate courts and arbitration law, so clauses for UK-wide groups should name the jurisdiction.
Questions businesses ask
Does the Arbitration Act 2025 apply to our existing arbitration clause?
Yes, for arbitrations started on or after 1 August 2025, whenever the clause was signed. Arbitrations started before that date continue under the unamended Arbitration Act 1996.67
Can an English judgment now be enforced in the EU?
Under the Hague 2019 Judgments Convention, in force for the UK since 1 July 2025 and for the EU since 1 September 2023, yes for qualifying civil and commercial judgments, but only where the original proceedings started after the Convention applied between the UK and the state concerned.1617
Can the court make us mediate?
Courts in England and Wales have express power to order parties to engage in ADR, and small claims of £10,000 or less are referred to free court mediation.2122
Who pays legal costs in English litigation?
Costs are in the court's discretion, including who pays and how much. The detailed rules in CPR Part 44 were not confirmed.5
What this guide does not yet confirm
These points need checking with a qualified local professional in the United Kingdom before you rely on them.
- The general rule in CPR 44.2 that the unsuccessful party pays the successful party's costs could not yet be checked and is not claimed.
- The text of the UK's declarations under the Hague 2019 and 2005 Conventions, and how they apply in Scotland and Northern Ireland, were not reviewed.
- Enforcement of foreign judgments under the Administration of Justice Act 1920 and at common law, and the list of countries designated under the 1933 Act, were not confirmed.
- Northern Ireland courts, the Scottish sheriff courts and the UK Supreme Court's civil jurisdiction were not researched.
- Court fees, limitation periods and typical timescales were not researched.
- Arbitral institutions (for example the LCIA) and their rules were not researched.
Sources and review status
Each statement is numbered to the source it was checked against. We use official sources where we can, and each statement says whether it was checked against an official or a secondary source. Sources last checked on 19 October 2026. None of it has been professionally reviewed yet: it is research checked against official and secondary sources by WONE Global, not legal or tax advice.
The Business and Property Courts are specialist courts within the High Court of England and Wales for business, commercial, property, technology and construction disputes, sitting in London and in regional centres around England and Wales. Includes the Commercial Court, Circuit Commercial Courts, Admiralty Court, Insolvency and Companies List, Intellectual Property List (with the Patents Court) and other Business and Property Division lists.
The Commercial Court in London hears a wide range of significant commercial disputes, the majority of which have an international element, and supports arbitrations seated in England and Wales. Proceedings are governed by the Civil Procedure Rules and the Commercial Court Guide.
The Court of Session in Edinburgh is Scotland's supreme civil court: the Outer House hears first-instance cases, including high-value claims over £100,000 and commercial cases, and the Inner House is mainly an appeal court, with certain Inner House decisions appealable to the UK Supreme Court with permission. Scotland has its own courts and procedure, separate from England and Wales.
Commercial actions in the Court of Session, covering any transaction or dispute of a commercial or business nature, are allocated to one of three commercial judges, who holds an early preliminary hearing, requires early disclosure of documents and usually orders the parties to meet to resolve or narrow the dispute. Company and insolvency petitions are also dealt with by the commercial judges.
In the High Court, Court of Appeal and county court in England and Wales, costs are in the discretion of the court, which decides by whom and to what extent they are paid. Senior Courts Act 1981 s51(1), (3), subject to rules of court.
The general rule in CPR 44.2 that the unsuccessful party pays the successful party's costs could not yet be checked (justice.gov.uk Part 44 page returned errors) and is not separately claimed.
The Arbitration Act 2025 received Royal Assent on 24 February 2025, and its amendments to the Arbitration Act 1996 came into force on 1 August 2025 under the Arbitration Act 2025 (Commencement) Regulations 2025 (SI 2025/905). Sections 16 to 18 came into force on Royal Assent; the rest on 1 August 2025.
Royal Assent date taken from the annotation on section 17 ('in force at 24.2.2025, see s. 17(1)', which brings s17 into force on the day the Act is passed). The 1 August 2025 date for sections 1, 2, 7, 8, 11 and 15 was confirmed on each section page; regulation 2 of SI 2025/905 is headed 'Provision coming into force on 1st August 2025'.
The Arbitration Act 2025 amendments do not apply to arbitral proceedings commenced before they came into force or to court proceedings connected with them; otherwise they apply to arbitration agreements whenever made. Arbitration Act 2025 s17(3), subject to any transitional regulations.
Under new section 6A of the Arbitration Act 1996, an arbitration agreement is governed by the law the parties expressly agree applies to it or, failing that, the law of the seat; choosing a law for the main contract is not by itself an express choice for the arbitration agreement. Does not apply to arbitration agreements arising from standing offers in treaties or non-UK legislation (investor-state cases).
Arbitrators and prospective arbitrators must disclose, as soon as reasonably practicable, circumstances that might reasonably give rise to justifiable doubts about their impartiality, including circumstances they ought reasonably to be aware of; this duty is mandatory. New s23A Arbitration Act 1996, added to the mandatory provisions in Schedule 1.
Unless the parties agree otherwise, a tribunal may make an award on a summary basis on a claim or issue if a party has no real prospect of succeeding on it or of defending it, after giving the parties a reasonable opportunity to make representations. New s39A Arbitration Act 1996.
Where parties have agreed to rules providing for an emergency arbitrator and one is appointed, the emergency arbitrator may, unless the parties agree otherwise, make a peremptory order if a party fails without showing sufficient cause to comply with an order or direction. New s41A Arbitration Act 1996.
In a court challenge to an award for lack of jurisdiction under section 67, where the applicant took part in the arbitration, new grounds and new evidence are allowed only if they could not reasonably have been raised before the tribunal, and evidence heard by the tribunal is not reheard, unless the court directs otherwise in the interests of justice. New s67(3B)-(3D) Arbitration Act 1996, applying where the tribunal has already ruled on the objection.
The Arbitration Act 1996, and therefore the 2025 amendments to it, extends to England and Wales and Northern Ireland; apart from the consumer arbitration provisions, it does not extend to Scotland. Arbitration Act 1996 s108; Arbitration Act 2025 s16(1) gives each amendment the same extent as the provision amended.
Arbitration seated in Scotland is governed by the Arbitration (Scotland) Act 2010, which sets out founding principles and the Scottish Arbitration Rules.
Only the table of contents was read; the substance of the Scottish Arbitration Rules was not reviewed.
The United Kingdom acceded to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards on 24 September 1975, with entry into force on 23 December 1975, and applies it only to awards made in the territory of another contracting state. Reciprocity declaration (note a). Extended to several Crown Dependencies and Overseas Territories, including the British Virgin Islands, Cayman Islands, Bermuda, Gibraltar, Guernsey, Jersey and the Isle of Man.
Recorded for reuse; the disputes area itself was not completed run.
The HCCH 2019 Judgments Convention entered into force for the United Kingdom on 1 July 2025, after signature on 12 January 2024 and ratification on 27 June 2024. Other contracting parties include the EU (for its Member States, from 1 September 2023), Ukraine and Uruguay, with Albania and Montenegro from 1 March 2026 and Andorra from 1 June 2026. The UK made declarations whose text was not reviewed.
The 2019 Judgments Convention applies only if it was in effect between the state of origin and the requested state when the original proceedings were started, and it excludes matters including insolvency, intellectual property, defamation, privacy, most antitrust matters and arbitration. Article 16 (transitional) and Article 2 (exclusions). Applies to civil or commercial judgments, not revenue, customs or administrative matters.
The HCCH status table for the 2005 Choice of Court Agreements Convention records the United Kingdom's accession on 28 September 2020, with entry into force shown as 1 October 2015. The 1 October 2015 date reflects the UK's earlier participation through the EU; the UK's declarations were not reviewed.
How English courts treat exclusive choice-of-court agreements concluded between 1 October 2015 and 31 December 2020 was not researched.
Under the Foreign Judgments (Reciprocal Enforcement) Act 1933, money judgments of recognised courts in countries designated by Order in Council for reciprocity can be registered in the UK if final and conclusive, but not judgments for taxes, fines or penalties. Applies only to countries covered by an Order in Council; judgments from other countries generally require separate proceedings.
The list of designated countries, the Administration of Justice Act 1920 regime and common-law enforcement were not confirmed.
The overriding objective of the Civil Procedure Rules in England and Wales includes promoting or using alternative dispute resolution, and active case management includes ordering or encouraging the parties to use ADR. CPR 1.1(2)(f) and 1.4(2)(e).
Courts in England and Wales have express power to order the parties to engage in alternative dispute resolution. CPR 3.1(2)(o).
In the county court small claims process, a defendant disputing a claim of £10,000 or less is told they must attend mediation, which is free; for higher claims mediation is offered and requires both sides to agree. England and Wales.
The start date of compulsory referral was not stated on the page.
Questions on this topic
22 statements on courts, arbitration, mediation and enforcement in the United Kingdom
